Wendy St, Clinton, MD 20735
The borrower is requesting a hard money loan to purchase and renovate a property. The purchase price is $223,000 and the property only needs about $15k in minor upgrades. The borrower purchased several properties from the same seller (bank) and go a very good deal on it. We will hold all construction funds in escrow and will reimburse for completed work. The borrower will be bringing about $20K to closing.
Exit Strategy:Resell property
|Loan Amount:||$240,000 1st Mortgage|
|Value of Subject Property:||$400,000|
|Loan to Value:||60%|
|Term requested:||9 Month Balloon|
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property at a low LTV. The Borrower is strong with experience and assets.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.